Institutional Tuition Discount by Income: Public Institutions

In 2011-12, on average, institutional grant aid covered 20% (about $1,600) of the published tuition and fees for full-time in-state dependent students from the lower half of the income distribution enrolled in public four-year institutions.

Figure 2016_12: Published Tuition and Fees, Institutional Discount, and Net Tuition Revenue over Time at Public Institutions in 2011 Dollars, by Dependency Status and Family Income

Notes & Sources

Notes: Family income quartiles are based on all dependent undergraduate students across all sectors in 2011-12. In 2011 dollars, income categories are: lowest: less than $30,000; second: $30,000 to $64,999; third: $65,000 to $105,999; highest: $106,000 or higher. Institutional discount includes institutional grant aid and tuition and fee waivers. Includes full-time undergraduate students who were U.S. citizens or permanent residents.

In 2011-12, on average, institutional grant aid covered 16% ($1,310) of the published tuition and fees for all full-time in-state students at public four-year institutions.

Between 1999-00 and 2011-12, the average published tuition and fee prices at the public four-year colleges attended by the lowest-income dependent students increased by $3,350, from $4,470 (in 2011 dollars) to $7,820. The average net tuition these students paid — with a combination of their own resources and federal and state grant aid — increased by $2,660, from $3,590 to $6,250.

In 2011-12, the average institutional discount rate for full-time students at public two-year institutions was 10% ($280) of the published tuition and fees. Institutional discount rates at public two-year institutions were 8% ($210) for independent students, 13% ($360) for the lowest-income dependent students, and 9% ($290) to 11% ($340) for all other groups of dependent students.

The net tuition revenues — the net tuition paid to institutions — are higher than the total net prices students and families actually pay. Federal and state grant aid and tax benefits, as well as aid from employers and other private sources, help students pay the net institutional prices.

In 2011-12, less than 10% of independent and of lowest-income dependent students at public four-year institutions were enrolled outside their state of residence, but 19% of those from the highest income quartile were enrolled out-of-state.

Out-of-state students at public four-year institutions face higher tuition charges than state residents. They also receive larger discounts. In 2011-12, out-of-state dependent students from the highest family income quartile faced average published tuition and fees of $21,200, compared to $8,700 for in-state students. They received average institutional discounts of $3,200 (15%), compared to $1,100 (13%) for similar in-state students.